Phuket is one of the most sought-after destinations for people from all over the world. Foreigners come here for a relaxing holiday by the sea and lucrative real estate investments. It is becoming more widespread for investors to buy condominiums in Phuket for several reasons. Among them are:
- Opportunity to buy property in private ownership;
- Availability of a management company;
- On-site amenities;
- Wide choice of such properties on the market.
On top of that, the opportunity to earn a high and stable return on investment. But how do you make the most profitable deal? In this article, together with the experts from Thailand-Real.Estate, we will tell you about the benefits of choosing Phuket for a property purchase and share some useful lifehacks on how to maximise your returns.
Reasons to choose Phuket
Phuket is one of the most popular places in Thailand to invest in real estate. Let’s have a look at the reasons for this:
- Tourist destination. Phuket is probably the most popular holiday resort in Thailand. The flow of tourists increases by 10% every year. The island welcomes visitors all year round, which contributes to high demand for rental accommodation and creates favourable conditions for investors.
- Developing infrastructure. The Thai government seeks to attract foreign investment into the country and therefore pays great attention to infrastructure development. Phuket boasts top-class hospitals, international schools, huge shopping centres, marinas, and luxury golf courses. There is also a strong emphasis on transport development, including the construction of a new airport and railway network.
- High ROI. As mentioned above, year-round rentals are common in Phuket, with average annual yields of 6–8% per year. Some property developers even offer guaranteed yields of 5–15%. If you are planning to resell the property, you can also be sure that you will get a good income, as Phuket property is constantly growing by 4–5%.
- Attractive tax policy. There are no annual property taxes in the Kingdom. When registering real estate with the Land Department, only a one-time fee of 2–3% of the property’s value needs to be paid.
- Property offers. Phuket boasts a wide range of properties, and condominiums are particularly common on the island. Due to the development of the area and the high demand for housing, new apartment complexes appear every year, so you can easily find something to suit your requirements.
All these factors make Phuket a sought-after destination for profitable real estate investments.
Ways to generate the highest income
How can an investor increase their income by buying a property? Let’s consider a few ways:
- Buying at the start of construction. Developers offer the lowest prices at the very start of the project. As the complex is being built, the cost is gradually increasing. If you are prepared to wait until the end of construction, the final yield will be much higher.
- Instalments from the developer. Some developers offer an investor-friendly payment plan. The terms and conditions of instalments are determined by the developer. The approximate scheme looks like this: the buyer makes a down payment of 20 to 50% of the value, then at each new stage of construction, you pay about 20%, and the final payment is made after the completion of the project.
- Buying property in leasehold. You can buy a flat in Thailand on a freehold basis or in a long-term lease of up to 90 years. If you want full ownership, you usually need to add about 10% to the purchase price. Sometimes, it makes no sense for an investor to overpay because leasehold as a form of ownership gives all the same rights to dispose of the property and allows you to buy real estate cheaper, which will eventually affect profitability.
Don’t hesitate to discuss your strategy with a professional broker, who will help you choose the property and give advice on how to make the best deal.
Find your ideal condo in Phuket
Start choosing property in Phuket today with Thailand-Real.Estate. The real estate aggregator provides a wide collection of offers for buying condos in Phuket for expats. On the website, you can effortlessly find the best options according to your requirements.